BREAKING NEWS: Nestle has just announced the immediate dismissal of CEO Laurent Freixe due to an “undisclosed romantic relationship with a direct subordinate.” This shocking decision follows an internal investigation and marks a major shift in leadership for the Swiss food giant, known for brands like Nespresso and KitKat.
The board has swiftly appointed Philipp Navratil, the former CEO of Nespresso, as the new chief executive. “This was a necessary decision,” stated chairman Paul Bulcke. “Nestle’s values and governance are strong foundations of our company.” The investigation, overseen by Bulcke and lead independent director Pablo Isla, included the support of outside legal counsel.
Freixe’s departure comes just months after he took over as CEO in September 2024. His tenure has been marred by a significant challenge: a 10.3% drop in profits reported in late July due to sluggish consumer spending, particularly in China. Nestle’s share price has also struggled, down nearly a quarter last year, raising concerns among Swiss pension funds heavily invested in the company.
Nestle shares experienced a slight uptick, closing up 0.13% at 75.49 Swiss francs on the Swiss stock exchange following the announcement. The company is under pressure to address declining consumer spending and implement strategies for growth.
Navratil, who joined Nestle in 2001, expressed his commitment to the company’s strategic direction. “I fully embrace the company’s strategic direction and the action plan in place to drive Nestle’s performance,” he stated. He aims to accelerate efficiency efforts and drive growth as he steps into his new role amid this corporate upheaval.
As Nestle navigates this leadership transition, the focus will be on how Navratil can regain consumer trust and improve the company’s financial performance. Investors and consumers alike will be watching closely to see if the new chief can turn around the company’s fortunes against a backdrop of increasing competition and market challenges.
Stay tuned for updates as this story develops.
